TEHRAN – The US on Monday expanded its sanctions regime on Iran’s oil industry, targeting more than 30 brokers, tanker operators and shipping companies based in various countries.
The Treasury said these entities have facilitated the sale and transport of Iranian oil, thereby circumventing existing restrictions. These new measures began under the Trump administration after the US withdrawal from the 2015 nuclear deal, and were built on a series of previously implemented sanctions after being continued by the Biden administration. The goal of these sanctions is to reduce Iran’s crude oil exports to zero.
The announcement comes in a report showing the recent surge in Iran’s oil exports, particularly to China. Kpler’s data cited by Bloomberg suggests that the average daily oil export to Iran’s biggest buyers reached 1.74 million barrels in February, an 86% increase compared to January. This increase is attributed to the opening of new receiving terminals and greater reliance on ship-to-ship relocation, the methods used to obscure the origins of oil and avoid sanctions enforcement.
It remains unclear whether the newly imposed sanctions will effectively reduce this upward trend in Iran’s oil exports. The US Treasury argues that it will continue to actively target people who promote Iran’s oil trade, but the effectiveness of these measures is always up to Iran’s evolving strategies to avoid US pressure. It’s being challenged. The continued flow of Iranian oil to countries like China, in particular, raises questions regarding the long-term viability of the “maximum pressure” strategy and its ability to further influence Iran’s economic activity.